Qudsia Bano

Nishat Mills Limited, a leading textile company in Pakistan, has showcased “outstanding” financial performance in the first half of the fiscal year 2022-23. The company’s sales revenue surged by an “impressive” 28% to Rs67.5 billion from Rs52.9 billion in the corresponding period of the previous fiscal, reports WealthPK.

The company’s gross profit also witnessed a decent growth of 37%, reaching Rs11.4 billion in 1HFY23 compared to Rs8.3 billion in 1HFY22. This significant increase in gross profit is a testament to the company’s relentless focus on operational excellence and continuous improvement. Furthermore, the company reported a net profit of Rs7.8 billion in the first six months of the fiscal year, up by an impressive 40% compared to the profit of Rs5.6 billion in the corresponding period of the previous year.

The increase in profitability is mainly attributable to an increase in the cost of borrowing on average and short-term loans availed to support rising working capital needs. The company remains committed to its mission of excellence, innovation and sustainability, and looks forward to continuing to lead the way in the textile industry in Pakistan and beyond.

Performance in 2021-22

The company’s gross sales experienced remarkable growth during the fiscal year 2021-22, surging from Rs71.4 billion in FY21 to Rs115.76 billion, showing an increase of 62% year-on-year. Additionally, the gross profit for FY22 surged to Rs17.3 billion, marking a significant 86% increase from Rs9.3 billion in the previous fiscal year.

The profit-before-tax also rose from Rs7.1 billion in FY21 to Rs12.9 billion in FY22, while the profit-after-tax increased from Rs5.9 billion to Rs10.3 billion in FY22, exhibiting a year-on-year growth of 74%.

In FY22, the earnings per share (EPS) witnessed an outstanding surge, recording an increase of 74.17% to Rs29.33 compared to Rs16.84 in FY21. This demonstrated the company’s exceptional growth and financial stability.

About the company

Nishat Mills is a public limited company incorporated in Pakistan under the Companies Act, 1913 (now the Companies Act, 2017). The company is engaged in the business of textile manufacturing, spinning, combing, weaving, bleaching, dyeing, printing and stitching. It also generates and sells electricity.

Credit: Independent News Pakistan-WealthPk